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Saturday, June 29, 2013

Astra Microwave product offering a good investment
opportunity in the less penetrated defence sector by private sector companies.This
Hyderabad based company is one of the very few listed players concentrating in
this sector.Company manufacturing various Radio Frequency and Microwave based products for sectors like Defence,Telecom,Space..etc.Its
product list includes different types of
Radars,Modulators,Transmitters and Amplifiers.It is a one of the very few
reliable Indian suppliers of such products to Public sector companies operating
in defense and space sector in India like BEL and ISRO. Using their strong R&D AMP
indigenously developed and supplied many
critical parts ofIndia’s firstradar Imaging Satellite (RISAT-1) which
launched in 2012. Company also having strong business relations with overseas
defence and space sector players. AMPL is working on a wide variety of
important and high-tech defence projects such as Airborne Early Warning and
Control (AEW&C) programme of DRDO, various ground and air-based radar
programmes for Indian armed forces, sub-systems for Akash and Astra missiles,
and Unmanned Aerial Vehicles (UAVs) like Nishant and Rustom.

Companies strong relations with ISRO and DRDO as a reliable
supplier in a quality quotient industry creates a niche status for this
company.Last year company received one high value order worth Rs.350 Cr from an
overseas customer for supply of microwave sub systems.In fact it is one of the
largest orders placed by a foreign company to an Indian private sector company
in defence sector.We can take it as a testimony for the quality of the products
supplied by AMP.

Indian defence sector is expected to open up for private sector players
in a big way going forward.Companies like L&T ,Mahindra..etc are scouting
plans to tap the upcoming opportunities in this sector.With less than 25%
promoter stake AMP is really a potential take over target for any serious
player in this sector. In the past many rumors are there in the market
connected with a possible take over by L&T,Mahindra ,BEL ..etc. L&T
already acquired close to 10 % stake in AMP. Presence of some private equity
investors and mutual funds makes it vulnerable as an easy take over target .One
such investor is reducing their stake through open market sales but on the other side ,promoters are very
aggressively hiking their stake in past few weeks through open market purchases.Whether
there is a take over in future or not ,there is nothing much to loose at CMP of Rs.35.Company having very
good order book position of Rs.1025 cr which is almost 5 times ofcompany’s last year turnover.Such kind of a
visibility is very rare in these days of recession. I hope ,share price will move to the next
orbit once the supply from this single source ends .Recommending a BUY at CMP
of Rs.35 with a long term view.Stock listed both in NSE and BSE

I had invested in Parekh Aluminex an year ago looking at their dividend pauouts & past history. Since then the stock has come down like anything. Reasons stated are the promoter (who died recently) had pledged his shares to a financial firm, the financial books were cooked etc. Now as per today's picture, the promoter share is mere 19%. The company is not coming out with any public statements to assure the investors of it's current status or future plans of revival. The market cap is mere 54 crores with huge debt on the books. Do you think the company suffers from a man made problem ? Is it a serious case of corporate fraud (I am contemplating approaching Scores.Gov @ Sebi with a complaint)? Can it revive from here ?

Sir, on one side Strategic Venture fund has been selling, while on the other side the manager of the fund made purchase of 25,000 shares of Astra Microwave. It's strage, maybe after your research, he's realizing the value of investments in the company:)

I think you are referring the buying of shares by Mr Atim Kabra.What you said is right- the fund is selling and the MD of the company which manageing this fund is personally buying from open market.Normally the funds may be raised by the firm from other investors too and they may have obligations to give returns to them by realising the profit .This may be the reason.During march quarter alone he increased his stake from 1.10 % to 2.40%

I Prefer Kaveri Seed from Agri Inputs space.Monsanto may see some more up move backed by good monsoon.But they are promoting all their new products through an unlisted company directly held by their foreign parent .I don't think this policy is good for the share holders of listed entity.

Thanks for suggesting various dimensional stocks, but your disclaimer of vested interest is missing in this Astra can i know why?, my second question is I am very much greatful for suggesting Marksans pharma- where i achieved 100% profit, now what do u suggest, whether to hold or sell, because i have VA tech, mangalam cement, orient bell & granules where i had lost almost 50% of my money there, but still holding. kindly suggest what to do sir.

Marksans Pharma is making a 112.99% profit in my portfolio, Kindly suggest whether to hold or book profit now itself. I have 3000 shares, i bought only through your recommendation thanks a lot for that.

Marksans Pharma is making a 150% profit in my portfolio, Kindly suggest whether to hold or book profit now itself. I have XXXXXX no. of shares, i bought only through your recommendation thanks a lot for that.

Marksans Pharma is making a 150% profit in my portfolio, Kindly suggest whether to hold or book profit now itself. I have xxxxxx no. of shares, i bought only through your recommendation thanks a lot for that.